Question
. Sohar Aluminium has the following dividend history: Year Dividend per Share Recently paid 25 bz Last year 19 bz Two years ago 18 bz
. Sohar Aluminium has the following dividend history:
| Year | Dividend per Share |
| Recently paid | 25 bz |
| Last year | 19 bz |
| Two years ago | 18 bz |
| Three years ago | 16 bz |
| Four years ago | 14 bz |
| Five years ago | 11 bz |
The rate of return required on a share of this risk class is 15 per cent. Assuming that this dividend growth rate is unsustainable and Sohar will halve its historic rate in the future, what is the value of one share?
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Economics Of Money Banking And Financial Markets
Authors: Frederic Mishkin
5th Edition
0134734203, 978-0134734200
